(a) - (d)(No change.)
(e)An inspector shall comply with the following requirements.
(1)An inspector shall not inspect a property when
any compensation or future referrals depend on reported findings or
on the closing or settlement of a property.
(2)In this section, "settlement service" means a service
provided in connection with a prospective or actual settlement, and
"settlement service provider" includes, but is not limited to, any
one or more of the following:
(A)federally related mortgage loan originator;
(B)mortgage broker;
(C)a lender or other person who provides any
service related to the origination, processing or funding of a real
estate loan;
(D)[(C)] a title
service provider;
(E)[(D)] an attorney;
(F)[(E)] a person who prepares
documents, including notarization, delivery, and recordation;
(G)a person who provides credit report
services;
(H)[(F)] an appraiser;
(I)[(G)] an inspector;
(J)[(H)] a settlement
agent;
(K)[(I)] a person who provides
mortgage insurance services;
(L)[(J)] a person who provides
services involving hazard, flood, or other casualty insurance, [
or] homeowner's warranties, or residential service contract;
(M)[(K)] a real estate
agent or broker; and
(N)[(L)] a person who provides
any other services for which a settlement service provider requires
a borrower or seller to pay.
(3)An inspector shall not pay or receive a fee or
other valuable consideration to or from any other settlement service
provider for, but not limited to, the following:
(A)the referral of inspections;
(B)inclusion on a list of inspectors, preferred providers,
or similar arrangements; or
(C)inclusion on lists of inspectors contingent on
other financial agreements.
(4)An inspector shall not receive a fee or other valuable
consideration, directly or indirectly, for referring services that
are not settlement services or other products to the inspector's client
without the client's consent.
(5)This section does not prohibit an inspector from
paying or receiving a fee or other valuable consideration, such as
to or from a contractor, for services actually rendered.
(6)An inspector shall not accept employment to repair,
replace, maintain or upgrade systems or components of property covered
by the Standards of Practice under this subchapter on which the inspector
has performed an inspection under a real estate contract, lease, or
exchange of real property within 12 months of the date of the inspection.
(7)Inspectors shall not disclose inspection results
or client information without prior approval from the client. Inspectors,
at their discretion, may disclose observed immediate safety hazards
to occupants exposed to such hazards when feasible.
(8)This subsection does not prohibit [an inspector
from]:
(A)normal promotional or educational
activity that is not conditioned on the referral of business and that
does not involve the defraying of expenses that otherwise would be
incurred; or
[(A)engaging in legal promotional
or educational activities to or with settlement service providers
that are not conditioned on the referral of business; or]
(B)a payment at market rates to any
person for goods actually furnished or for services actually performed.
[(B)purchasing advertising and promoting
the inspector at market rates from any person in any publication,
event or media.]
(f) - (g)(No change.)
The agency certifies that legal counsel has reviewed
the proposal and found it to be within
the state agency's legal authority
to adopt.
Filed with the Office
of the Secretary of State on May 8, 2019
TRD-201901375 Chelsea Buchholtz
General Counsel
Texas Real Estate Commission
Earliest possible date of adoption: June 23, 2019
For further information, please call: (512) 936-3177
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